Buying Spirit Airlines is another way you can fade the recent Delta variant pessimism. Another hard-hit name that mounted a rapid stock price recovery from mid-2020 to early 2021, its pullback from just over $40 per share to around $28 per share today, appears to be a bonafide “buy the dip” situation.
With its relatively solid (for an airline) balance sheet, SAVE stock looks primed to bounce back, assuming the variant worries dissipate and the air travel sector completes its recovery.
In general, low-cost carriers like this one may make better airline plays than “old school” names such as American Airlines. Less burdened by long-term obligations and with more efficient cost structures, Spirit is in a much stronger position to return to pre-pandemic profitability levels and grab additional market share from the legacy carriers.